The Real Deal New York

Why long-term renters are buying homes in cities they’ll never live in

Individuals are taking a leaf out of institutional investors' strategy book when it comes to home buying
August 18, 2018 02:06PM

(Credit: Zache, Pixabay)

When buying a house in your own city is too expensive, find another city. The concept is finding traction among a growing number of would-be home buyers priced out of their own cities.

The idea, according to the Wall Street Journal, is based on the strategy institutional investors followed after the housing market crashed when they snapped up single-family homes across the country at rock-bottom prices.

Similarly, with the aid of new real estate tech platforms, individuals are now employing the same tactic in growing numbers: resigning themselves to being renters in ultra-pricey markets like San Francisco where they live, these investors then buy single-family homes in cities like Las Vegas, Wichita, Memphis and Baltimore and rent them out.

The cities these “long-distance landlords” buy into have strong rental markets and often courts and laws that favor landlords over tenants. [WSJ]Erin Hudson